Accounting Policies of Ravi Kumar Distilleries Ltd. Company

The Company was incorporated during the year 1993 and is engaged in the
business of manufacture and sale of Indian Made Foreign Liquor (IMFL).
The Company has its manufacturing unit at Pondicherry.

2.1 Basis of preparation of Financial Statements:

The Financial Statements have been prepared in accordance with the
generally accepted accounting principles ('GAAP') applicable in India
under the historical cost convention on accrual basis These financial
statements have been prepared to comply in all material aspects with
the accounting standards notified under Section 133 read with Rule 7 of
the Companies (Accounts)Rules,2014, as amended from time to time and
the other relevant provisions of the Companies Act,2013.

All Assets and Liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
Criteria set out in Schedule III of the Companies Act,2013.

2.2 Use of Estimates:

The preparation of Financial Statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the
financial statements. Actual results could differ from these estimates.
Difference between the actual results and estimates are recognized in
the period in which the results are known / materialized. Management
believes that the estimates used in preparation of financial statements
are prudent and reasonable.

2.3 Tangible Assets:

Tangible Assets are stated at cost (or revalued amount as the case may
be) less accumulated depreciation and accumulated impairment losses if
any. Cost Comprises purchase price and any other attributable cost of
bringing the asset to its working condition for its intended use.
Subsequent expenditure related to an item of fixed asset are added to
its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.

Gain or loss arising from de-recognition of assets are measured as the
difference between the net disposal proceeds and the Carrying amount of
the assets and are recognized in the statement of profit and loss when
the asset is derecognized.

Consequent to the enactment of the Companies Act, 2013 (the Act) and
its applicability for accounting periods commencing after April 1,
2014, the company has reworked depreciation with reference to the
estimated economic lives of fixed assets prescribed by Schedule II to
the Act or actual useful life of assets, whichever is lower. In case of
assets whose life has completed as above, the carrying value, net of
residual value as at April 1, 2014 has been adjusted to the reserves
and in other cases the carrying value has been depreciated over the
remaining of the revised life of the asset and recognized in the
statement of Profit and Loss.

2.4 Borrowing Costs:

Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged tor revenue.

2.5 Impairment of assets:

As on Balance Sheet date, the Company reviews the carrying amount of
Fixed Assets to determine whether there are any indications that those
assets have suffered "Impairment Loss" Impairment loss, if any, is
provided to the extent, the carrying amount of assets exceeds their
recoverable amount. Recoverable amount is higher of an asset's net
selling price and its value in use.Value inuse is the present value of
estimated future cash flows
expectedtoarisefromcontinuinguseofanassetandfromits disposal at the end
of its use full life.

2.6 Investments:

Investments that are readily realizable and intended to be held for not
more than a year are classified as "Current Investments'. All other
Investments are classified as Long Term Investments.

Current investments are carried at lower of cost or Market/Fair Value
determined on a individual investment basis.

Long Term investments are valued at cost. Provision for diminution in
the value of long term investment is made only if such deckles other
than temporary in nature.

2.7 Grants and Subsidies:

Grants and Subsidies are recognized when there is reasonable assurance
that the Grant / Subsidy will be received and all attaching conditions
will be complied with. When the grant or subsidy relates to a revenue
item it is recognized as income over the period necessary to match them
on a systematic basl to the costs, which it is intended to compensate.

Where the Grant on subsidy relates to an asset its value is deducted in
arriving at the carrying amount of the related asset.

2.8 Revenue Recognition:

The company is in the business of manufacture and sale of IMFL
products. Sale of goods are recognized when the goods are dispatched
/on passing title of the Goods to the customers. The sales are
accounted by including the scheme / discounts / Excise Duty and Sales
Tax. The Scheme discounts / Sales Tax are charged off separately to the
Profit and Loss Account. Profit on sale of investments is recorded on
transfer of title from the company and is determined as the difference
between the sale price and the carrying value of the investment.
Interest is recognized based on time-proportion method based on rates
implicit in the transaction.

2.9 Inventories:

Inventories are valued at lower of cost and estimated net realizable
value after providing for cost of obsolescence and other anticipated
losses, wherever considered necessary. Cost includes taxes, duties and
all incidental expenses directly attributable to the purchases.

The Provident fund scheme and Employee State Insurance Scheme are
defined contribution plans. The company contributes a fixed sum to the
Provident Fund / Employees State Insurance Scheme maintained by the
Central Government The contribution paid/ payable under the schemes is
recognized during the period in which the employee renders the related
service.

The liability for Gratuity to employees as at the Balance Sheet date is
as per the obligation to gratuity fund administered by the trustees and
managed by Life Insurance Corporation of India. The contribution
thereof paid/payable for the relevant period is charged off to Profit
and Loss Account.

2.11 Foreign Exchange Transactions:

Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the respective transactions.

Foreign Exchange monetary items in the Balance Sheet are translated at
the year-end rates. Exchange differences on settlement / conversion are
adjusted to Profit and Loss Account.

2.12 Tax Expenses:

Tax expenses for the year comprise of current tax and deferred tax.
Current tax is measured after taking into consideration the deductions
and exemptions admissible under the provision of Income Tax Act, 1961
and in accordance with Accounting Standard 22on" Accounting for Taxes
on Income".

Deferred Tax represents the tax effect of timing differences between
taxable income and accounting income for the reporting period and is
capable of reversal in one or more subsequent periods. Deferred tax are
quantified using the tax rates and laws enacted or substantively
enacted as on the Balance Sheet Date

Deferred Tax Assets are recognized and carried forward only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. Deferred tax asset on unabsorbed depreciation and
carry forward of losses are not recognized unless there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.

2.13 Contingent Liabilities and Provisions:

Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the Amount of
obligation can be made.

Contingent Liability is disclosed for

a. Possible obligation which will be confirmed only by future events
not wholly within the control of the company or

b. Present obligations arising from the past events where it is not
probable that an outflow of resources will be required to settle the
oblations or are liable estimate of the amount of the obligation cannot
be made.

c. Contingent Assets are not recognized in the financial statements
since this may result in the recognition of income that may never be
realized.

2.14 Earnings Per Share:

In determining the Earnings Per share, the company considers the net
profit after tax including any post tax effect of any extraordinary /
exceptional item. The number of shares used in computing basic earnings
per share is the Weighted average number of shares outstanding during
the period. The number of shares used in computing Diluted earnings per
share comprises the Weighted average number of shares considered for
computing Basic Earnings per share and also the weighted number of
equities rest hat have been issued on conversion of all potentially
dilutive shares.

In the event of issue of bonus shares, or share split the number of
equity shares outstanding is increased without an increase in the
resources. The number of Equity shares outstanding before the event is
adjusted for the proportionate change in the number of equity shares
outstanding as if thee venthadocmrre the beginning of the earliest
period reported.

2.15 Leases:

Finance Lease

Leases which effectively transfer to the company all the risks and
benefits incidental to ownership of the leased item, are classified as
Finance Lease. Lease rentals are capitalized at the lower of the fair
value and present value of the minimum lease payments at the inception
of the lease term and disclosed as leased assets. Lease payments are
apportioned between the finance charges and reduction of the lease
liability based on the implicit rate of return.

Operating Lease

Lease where the less or effectively retains substantially all risks and
benefits of the asset are classified as Operating lease. Operating
lease payments are recognized as an expense in the Profit & Loss
account on a Straight Line Basis over the Lease term.

2.16 Segment Reporting:

The generally accepted accounting principles used in the preparation of
the financial statements are applied to record revenue And expenditure
in individual segments.

Segment revenue and segment results include transfers between business
segments. Such transfers are accounted for at the agreed transaction
value and such transfers are eliminated in the consolidation of the
segments.

Expenses that are directly identifiable to segments are considered for
determining the segment result. Expenses, which relate to the company
as a whole and are not allocable to segments are included under
unallocated corporate expenses.

Segment assets and liabilities include those directly identifiable with
the respective segments. Unallocated corporate assets and Liabilities
represent the assets and liabilities that relate to the company as a
whole and not allocable to any segment.

Mar 31, 2014

1.1 Basis of preparation of Financial Statements:

The Financial Statements have been prepared in accordance with the
generally accepted accounting principles (''GAAP'') applicable in India
under the historical cost convention on accrual basis. These financial
statements have been prepared to comply in all material aspects with
the accounting standards notified under Section 211 (3C), Companies
(Accounting Standard) Rules, 2006, as amended from time to time and the
other relevant provisions of the Companies Act, 1956.

All Assets and Liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in Schedule VI of the Companies Act, 1956.

2.2 Use of Estimates:

The preparation of Financial Statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the
financial statements. Actual results could differ from these estimates.
Difference between the actual results and estimates are recognized in
the period in which the results are known / materialized. Management
believes that the estimates used in preparation of financial statements
are prudent and reasonable.

2.3 Tangible Assets:

Tangible Assets are stated at cost (or revalued amount as the case may
be) less accumulated depreciation and accumulated impairment losses if
any. Cost Comprises purchase price and any other attributable cost of
bringing the asset to its working condition for its intended use.
Subsequent expenditure related to an item of fixed asset are added to
its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.

Gain or loss arising from de-recognition of assets are measured as the
difference between the net disposal proceeds and the carrying amount of
the assets and are recognized in the statement of profit and loss when
the asset is derecognized.

Depreciation on fixed assets is provided on written down value method
(WDV) at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956 over their useful life. Depreciation of asset sold
/ discarded during the period is proportionately charged. Individual
low cost assets (acquired for less than Rs 5000/-) are depreciated
within a year of acquisition. Intangible assets are amortized over
their estimated useful life on a straight line basis.

2.4 Borrowing Costs:

Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.

2.5 Impairment of assets:

As on Balance Sheet date, the Company reviews the carrying amount of
Fixed Assets to determine whether there are any indications that those
assets have suffered "Impairment Loss". Impairment loss, if any, is
provided to the extent, the carrying amount of assets exceeds their
recoverable amount. Recoverable amount is higher of an asset''s net
selling price and its value in use. Value in use is the present value
of estimated future cash flows expected to arise from continuing use of
an asset and from its disposal at the end of its useful life.

2.6 Investments:

Investments that are readily realizable and intended to be held for not
more than a year are classified as "Current Investments''. All other
Investments are classified as Long Term Investments.

Current Investments are carried at lower of cost or Market / Fair Value
determined on a individual investment basis.

Long Term investments are valued at cost. Provision for diminution in
the value of long term investment is made only if such decline is other
than temporary in nature.

. 2.7 Grants and Subsidies:

Grants and Subsidies are recognized when there is reasonable assurance
that the Grant / Subsidy will be received and all attaching conditions
will be complied with. When the grant or subsidy relates to a revenue
item it is recognized as income over the period necessary to match them
on a systematic basis to the costs, which it is intended to compensate.

Where the Grant on subsidy relates to an asset its value is deducted in
arriving at the carrying amount of the related asset.

2.8 Revenue Recognition:

The company is in the business of manufacture and sale of IMFL
products. Sale of goods are recognized when the goods are dispatched /
on passing title of the Goods to the customers. The sales are accounted
by including the scheme / discounts / Excise Duty and Sales Tax. The
Scheme discounts / Sales Tax are charged off separately to the Profit
and Loss Account. Profit on sale of investments is recorded on transfer
of title from the company and is determined as the difference between
the sale price and the carrying value of the investment. Interest is
recognized based on time-proportion method based on rates implicit in
the transaction.

2.9 Inventories:

Inventories are valued at lower of cost and estimated net realizable
value after providing for cost of obsolescence and other anticipated
losses, wherever considered necessary. Cost includes taxes, duties and
all incidental expenses directly attributable to the purchases.

Method of assignment of cost is as under:

Raw Material, Stores & Spares : Weighted average cost basis

Work - in - progress : Direct expenses plus appropriate Factory
overheads on the basis of completed
production

The Provident fund scheme and Employee State Insurance Scheme are
defined contribution plans. The company contributes a fixed sum to the
Provident Fund / Employees State Insurance Scheme maintained by the
Central Government. The contribution paid / payable under the schemes
is recognised during the period in which the employee renders the
related service.

The liability for Gratuity to employees as at the Balance Sheet date is
as per the obligation to gratuity fund administered by the trustees and
managed by Life Insurance Corporation of India. The contribution
thereof paid / payable for the relevant period is charged off to Profit
and Loss Account.

2.11 Foreign Exchange Transactions:

Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the respective transactions.

Foreign Exchange monetary items in the Balance Sheet are translated at
the year-end rates. Exchange differences on settlement / conversion are
adjusted to Profit and Loss Account.

2.12 Tax Expense:

Tax expenses for the year comprise of current tax and deferred tax.
Current tax is measured after taking into consideration the deductions
and exemptions admissible under the provision of Income Tax Act, 1961
and in accordance with Accounting Standard 22 on "Accounting for Taxes
on Income".

Deferred Tax represents the tax effect of timing differences between
taxable income and accounting income for the reporting period and is
capable of reversal in one or more subsequent periods. Deferred tax are
quantified using the tax rates and laws enacted or substantively
enacted as on the Balance Sheet Date.

Deferred Tax Assets are recognized and carried forward only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. Deferred tax asset on unabsorbed depreciation and
carry forward of losses are not recognized unless there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.

Mar 31, 2011

(1) Basis of preparation of Financial Statements

The Financial Statements have been prepared under Historical Cost
conventions and in accordance with the Generally Accepted Accounting
Principles (''GAAP'') applicable in India, Companies (Accounting
Standard) Rules, 2006 notified by Ministry of Company Affairs and
relevant provisions of the Companies Act, 1956.

(2) Use of Estimates

The preparation of Financial Statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the
financial statements. Examples of such estimates include the useful
lives of fixed assets and intangible assets, provision for doubtful
debts / advances, future obligations in respect of retirement benefit
plans, etc. Actual results could differ from these estimates.
Difference between the actual results and estimates are recognized in
the period in which the results are known/materialized. Management
believes that the estimates used in preparation of Financial statements
are prudent and reasonable.

(3) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Direct
cost are capitalized until fixed assets are ready for use. Capital
Work-in-Progress comprises of advances paid to acquire Fixed Assets,
and the costs of the fixed assets are not ready for use for their
intended use as at Balance sheet date. Capital advances representing
unfulfilled contracts are included in Capital Work-in-Progress.

(4) Depreciation/Amortisation

Depreciation on fixed assets is provided on written down value method
(WDV) at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956 over their useful life. Depreciation of asset sold
/ discarded during the period is proportionately charged. Individual
low cost assets (acquired for less than Rs 5000/-) are depreciated in
the year of acquisition. Intangible assets are amortized over their
estimated useful life on a straight line basis.

(5) Borrowing Costs

Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.

(6) Investment

Investments that are readily realizable and intended to be held for not
more than a year are classified as "Current Investments''. All other
Investments are classified as Long Term Investments.

Current Investments are carried at lower of cost or Market / Fair Value
determined on a individual investment basis.

Long Term investments are valued at cost. Provision for diminution in
the value of long term investment is made only if such decline is other
than temporary in nature.

(7) Grants and Subsidies

Grants and Subsidies are recognized when there is reasonable assurance
that the Grant / Subsidy will be received and all attaching conditions
will be complied with. When the grant or subsidy relates to a revenue
item it is recognized as income over the period necessary to match them
on a systematic basis to the costs, which it is intended to compensate.

Where the Grant on subsidy relates to an asset its value is deducted in
arriving at the carrying amount of the related asset.

(8) Impairment of asset

As on Balance Sheet date, the Company reviews the carrying amount of
Fixed Assets to determine whether there are any indications that those
assets have suffered "Impairment Loss". Impairment loss, if any, is
provided to the extent, the carrying amount of assets exceeds their
recoverable amount. Recoverable amount is higher of an asset''s net
selling price and its value in use. Value in use is the present value
of estimated future cash flows expected to arise from continuing use of
an asset and from its disposal at the end of its useful life.

(9) Revenue Recognition

The company is in the business of manufacture and sale of IMFL
productions. Sale of goods are recognized when the goods are dispatched
/ on passing title of the Goods to the customers. The sales are
accounted by including the scheme/discounts/Excise Duty and Sales Tax.
The Scheme discounts / Sales Tax are charged off separately to the
Profit and Loss Account.

Profit on sale of investments is recorded on transfer of title from the
company and is determined as the difference between the sale price and
the carrying value of the investment. Interest is recognized based on
time-proportion method based on rates implicit in the transaction.

(10) Inventories

Inventories are valued at lower of cost and estimated net realizable
value after providing for cost of obsolescence and other anticipated
losses, wherever considered necessary. Cost includes taxes, duties and
all incidental expenses directly attributable to the purchases.

Method of assignment of cost is as under:

Raw Material, Stores & Spares : Weighted average cost basis

Work - in - progress : Direct expenses plus appropriate Factory
overheads on the basis of completed production

The Provident fund scheme and Employee State Insurance Scheme are
defined contribution plans. The company contributes a fixed sum to the
Provident Fund / Employees State Insurance Scheme maintained by the
Central Government. The contribution paid/payable under the schemes is
recognised during the period in which the employee renders the related
service.

The liability for Gratuity to employees as at the Balance Sheet date is
as per the obligation to fund gratuity fund administered by the
trustees and managed by Life Insurance Corporation of India. The
contribution thereof paid/payable for the relevant period is charged
off to Profit and Loss Account.

(12) Foreign Exchange Transactions

(i) Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the respective transactions.

(ii) Foreign Exchange monetary items in the Balance Sheet are
translated at the year-end rates. Exchange differences on settlement/
conversion are adjusted to Profit and Loss Account.

(13) Income Taxes

Tax expenses for the year comprises of Current Income tax and Deferred
Tax

(i) Tax expenses for the year comprise of current tax and deferred tax.
Current tax is measured after taking into consideration the deductions
and exemptions admissible under the provision of Income Tax Act, 1961
and in accordance with Accounting Standard 22 on "Accounting for Taxes
on Income".

(ii) Deferred Tax represents the tax effect of timing differences
between taxable income and accounting income for the reporting period
and is capable of reversal in one or more subsequent periods. Deferred
tax are quantified using the tax rates and laws enacted or
substantively enacted as on the Balance Sheet Date.

(iii) Deferred Tax Assets are recognized and carried forward only to
the extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. Deferred tax asset on unabsorbed depreciation and
carry forward of losses are not recognized unless there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.

(14) Contingent Liabilities and Provisions

Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made.

Contingent Liability is disclosed for

a) Possible obligation which will be confirmed only by future events
not wholly with in the control of the company or

b) Present obligations arising from the past events where it is not
probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount of the obligation can
not be made.

c) Contingent Assets are not recognized in the financial statements
since this may result in the recognition of income that may never be
realized

(15) Earnings Per Share

In determining the Earnings Per share, the company considers the net
profit after tax includes any post tax effect of any extraordinary /
exceptional item. The number of shares used in computing basic earnings
per share is the Weighted average number of shares outstanding during
the period.

The number of shares used in computing Diluted earnings per share
comprises the Weighted average number of shares considered for
computing Basic Earning per share and also the weighted number of
equity shares that would have been issued on conversion of all
potentially dilutive shares.

In the event of issue of bonus shares, or share split the number of
equity shares outstanding is increased without an increase in the
resources. The number of Equity shares outstanding before the event is
adjusted for the proportionate change in the number of equity shares
outstanding as if the event had occurred at the beginning of the
earliest period reported.

(16) Leases

Finance Lease

Leases which effectively transfer to the company all the risks and
benefits incidental to ownership of the leased item, are classified as
Finance Lease. Lease rentals are capitalized at the lower of the fair
value and present value of the minimum lease payments at the inception
of the lease term and disclosed as leased assets. Lease payments are
apportioned between the finance charges and reduction of the lease
liability based on the implicit rate of return.

Operating Lease

Lease where the lessor effectively retains substantially all risks and
benefits of the asset are classified as Operating lease. Operating
lease payments are recognized as an expense in the Profit & Loss
account on a Straight Line Basis over the Lease term.

(17) Segment Reporting

a. The generally accepted accounting principles used in the
preparation of the financial statements are applied to record revenue
and expenditure in individual segments

b. Segment revenue and segment results include transfers between
business segments. Such transfers are accounted for at the agreed
transaction value and such transfers are eliminated in the
consolidation of the segments.

c. Expenses that are directly identifiable to segments are considered
for determining the segment result. Expenses, which relate to the
company as a whole and are not allocable to segments are included under
unallocated corporate expenses.

d. Segment assets and liabilities include those directly identifiable
with the respective segments. Unallocated corporate assets and
liabilities represent the assets and liabilities that relate to the
company as a whole and not allocable to any segment.